IB loses $28 million buying MF Global Stock

JPMorgan bought shares in Bear Stearns just before they took them out as well. This allowed them to lock in the shareholder vote and prevent anyone else from jumping in.

It is very different than their market making activities. It's equivalent to TD buying Think of Swim. In this case it's a public company so they started buying shares. That's why you are even hearing about it. If Man were a subsidiary of Goldman and he had paid some lock up fee to get first look at buying the division you would never have heard about it.

It might sound shady, but companies take stakes in other companies just before acquisitions all the time. My guess he bought stock to try to prevent anyone else from blocking him or swooping in to buy the company.

He must have been pretty pumped about getting those customer accounts.

I don't think it represents any risk to their operations as a broker or market maker.
 
You could also make the case that P didn't let the share holdings influence his good judgement in rejecting Corswines co when the shortfall surfaced.

Hey, the bet lost. Live's to bet again.

You want to pick on someone, fly over to Japan and say hello to the Olympus kamikazes.

112796_japanese-kamikaze.jpg
 
Quote from stock777:

You could also make the case that P didn't let the share holdings influence his good judgement in rejecting Corswines co when the shortfall surfaced.

Hey, the bet lost. Live's to bet again.

You want to pick on someone, fly over to Japan and say hello to the Olympus kamikazes.

112796_japanese-kamikaze.jpg
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That's a good point. I think it shows his savvyness. He's aggressive and opportunistic but also willing to walk away.
 
Quote from western:

Also, a former SEC prosecutor is questioning the legality of such an investment.

http://www.nypost.com/p/news/business/dumb_ceo_tricks_rival_bought_mf_br7jn8ukRr4czxJRyijeVP
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The news sources which state that Mr. Peterffy personally bought these shares in MF Global are erroneous and most have already corrected this. The shares were held by the Company as stated in the 10Q.

It's also inaccurate to suggest that client money or assets were "intermingled" with firm assets as part of this strategic investment.
 
Quote from def:

You need to differentiate between the different affiliates of IBG. IBLLC is the brokerage and would not be the entity making the investment.
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Is IBG LLC also buying positions that a are being autoliquidated for distressed prices by IB LLC clients? is there a c conflict of interest in decisions done by IB LLC management, to also take into avcount how it would affect IBG LLC & Timber Hill?
 
Quote from trendy:

A huge bet? IB had a net capital balance of $1.3B as of August, according to the CFTC. I don't think a bet of 2% of net capital is a huge bet. What percentage of trading capital do you risk every day?
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Hey awesome, they are betting/gambling/ catching falling knives and keeping stops at 2.0%, awesome .

we all read the same books...:D :D :D


EF
 
Stops at 2%? really. what book is that, "How I blew my account up but never lost much an any single trade" by I. M. AnIdyot
 
Quote from stock777:

Stops at 2%? really. what book is that, "How I blew my account up but never lost much an any single trade" by I. M. AnIdyot
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Yea, I saw it at the bookstore, its right next to. "5.0% stops!!-How to recover after you have had 4 in a row and have had a stroke at your desk", famours Author: can.i.borrow.funds.to.fund.my account.

:)

EF
 
Quote from sprstpd:

Besides, I'm pretty sure they were made whole when they auto-liquidated jayre.
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Not sure how many will understand this post.

Anyway, I almost never smile when reading ET, but this was great.
 
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